What criteria do you use to select the Port of Origin and Destination for your cargo? After all, choosing one port over another can have a significant impact on your supply chain, and there are several factors you probably don’t know about that should influence your decision on which port is best for your cargo!
Although most people consider price to be the most important factor, it is important to remember that the cheapest route is often not the one that offers the best value. Find out in today’s post why you should look at the various options before making your decision.
- Location
Usually, the closest ports (whether Origin or Destination) are the most competitive, due to their accessibility and lower transportation costs.
However, this is not always the case. In order to improve competitiveness, many ports offer direct services to compensate for the greater distance. This is especially interesting for urgent or high-value cargo, whose cost savings may not compensate for risk of delayed arrival.
- Infrastructure
The port and its surrounding infrastructure can have a direct impact on how quickly and safely your cargo is collected, handled and delivered. Having channels and quays that allow ships to pass through and dock guarantees better accessibility and navigability, facilitating the movement of cargo and avoiding unnecessary delays.
- Truck Availability
If there is a shortage of trucks, which is a recurring problem in some countries, the choice of a port that is further away from the factory or warehouse may be the best solution if more truck drivers are available in that area.
- Customs Regulations and Procedures
Customs clearance can differ significantly from one port to another. In some ports there are specific rules for certain products, in others there are terminals whose rules vary from one to another and, finally, there are some which by their very nature have significantly higher customs duties.
This means that depending on the type of cargo, the country and the terminal, some ports are more suitable than others.
- Size
The larger the port, the greater the number of carriers and vessels operating there, and consequently the more direct services there will be.
In addition, there will be more equipment, more truck drivers, more customs agents and other partners involved in the transport of goods around the port, which will increase the efficiency of transport management.
- Technology
The most technologically advanced ports have access to resources such as GPS, weather forecasts and traffic news feeds, allowing them to optimise operations, minimise human error and track goods with greater accuracy and efficiency.
- Weather
Ports located in areas prone to natural disasters or extreme weather conditions can be a major inconvenience. In addition to the possibility of port closures, which would cause many delays, cargo is also at high risk of damage.
Sources:
Dedicated Freight. (2019. Choosing the best route for your goods. Consulted on October 10, 2023, at: https://www.dedicatedfreight.co.za/choosing-the-best-route-for-your-goods/
Boxxport. (2023). Factors to consider when choosing a port for your shipment. Consulted on October 10, 2023, at: https://blog.boxxport.com/choose-port-shipment/
iContainers. (2018). Why the port should be an important factor when deciding the best route for your shipment. Consulted on October 10, 2023, at: https://www.icontainers.com/us/2018/10/02/why-the-port-should-be-an-important-factor-when-deciding-the-best-route-for-your-shipment/?utm_source=ln&utm_medium=social&utm_campaign=portselection
